Detail information about upcoming iTunes phone from Cingular Wireless, Motorola, and Apple, published on Forbes.

According to Forbes, a person who has seen a version of the phone says it was designed to accommodate just 25 songs, which would be “sideloaded” from a user’s computer using iTunes. The phone was equipped with a 128-megabyte Sandisk TransFlash memory card–just one-quarter the capacity of Apple’s smallest iPod, the 512-megabyte shuffle, which holds about 120 songs.

Moreover, said Forbes, while it should be possible to swap out the memory card on the new iTunes phone for one with more capacity, the person who has seen the handset says the phone’s software appears to artificially cap song storage at 25 songs, regardless of how much memory the phone has.

Whether it’s true or just a rumor, we still have to wait couple more days. Last Monday, Apple announced to media that they will host a news conference on September 7th. Published said that there’d be a joint announcement between Apple, Motorola, and wireless carrier Cingular on that day. Some said that they will also introduce the new iTunes phone at the same day. The new iTunes phone will be equipped with software that would allow it to play songs purchased at Apple’s iTunes Web site.